Amid the ongoing fiscal chaos and rising uncertainties in the euro area and over the outlook for the recovery confidence was hit hard in June and likely dented mostly by the slowing recovery and worsening debt crisis.

The ZEW Economic Sentiment in June for the euro area slumped strongly to minus 5.9 from 13.6 and much below the expected 6.1. Investors' expectation gauge was surely hit hard by the rising risk in the area and the fear of default from debt-ridden Greece.

In Germany, the Economic Sentiment also fell to minus 9.0 from 3.1 and much below the expected minus 3.0. The Current Situation Index fell in June to 87.6 from 91.5 and below the expected 90.0.